Oklahoma Enacts Marketplace Sales Legislation

Oklahoma will require third-party online retailers to collect and remit the state’s sales or use tax. Gov. Mary Fallin has signed a bill enacting “marketplace facilitator” tax collection rules.

Oklahoma Adopts “Marketplace Facilitator” Concept

The bill requires a “marketplace facilitator” to collect the tax on sales by third-party sellers in the marketplace. A “marketplace facilitator” is a person that facilitates the retail sale of tangible personal property if it or an “affiliated person:”

  • lists or advertises property for retail sale in any “forum;” and
  • collects the purchaser’s payment and sends it to the seller.

The facilitator collects purchaser payments through agreements or arrangements with third parties, either directly or indirectly.

Minimum Sales Trigger Collection Requirement

The bill applies to a marketplace facilitator, “remote seller,” or “referrer” who had at least $10,000 in aggregate Oklahoma sales in the preceding 12 calendar months. It reqruires such sellers to:

  • file an election with the Tax Commission to collect and remit the tax on tproperty and obtain a sales tax permit; or
  • comply with certain notice and reporting requirements.

The governor states that the bill affects purchases from websites like Amazon.com in cases where the seller is a party other than the website.

H.B. 1019, Laws 2018, Second Extraordinary Session, effective April 10, 2018; Press Release, Oklahoma Gov. Mary Fallin, April 10, 2018

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